Golden Skillet Corp. v. Commonwealth

The question for decision in this case is whether equipment used in preparation and cooking of chicken for sale at retail is exempt from sales and use taxes under a statutory exemption for “machinery or tools... used directly in processing, manufacturing ... or conversion of products for sale or resale.” Code § 58-441.6.

The question arose when Golden Skillet Corporation (hereinafter, the taxpayer) was notified by the State Department of Taxation that an assessment had been made against the taxpayer for sales of “food cooking equipment.” Thereafter, the taxpayer filed in the trial court an…